Strict funding guidelines from big banks has made merchant cash advances more popular than ever. With banks requiring near-perfect credit and collateral, to get a loan weeks or months later, is not a viable option anymore for small business owners. Here’s more about merchant loan same day funding.
What is Merchant Loan Same Day Funding
Merchant loan same day funding is an overlooked, thriving $5 to $10 billion a year industry. Some analysts project the merchant cash industry at doing $20 billion a year or more.
Merchant cash advances have been around since the 90’s, and started to become more mainstream around 2005, even though many people believe they got popular during the financial collapse of 2008.
What makes merchant cash advances more popular than ever are the simple requirements and fast funding times. If you apply for a merchant cash loan in the morning, Monday thru Friday, chances are you can have money in your business checking account by the afternoon.
How Merchant Loan Same Day Funding Work
Merchant loans are actually business cash advances. The more traditional merchant cash advance based on what they advanced you by your future credit card transactions. A more modern merchant cash advance bases what they advance you by your general business revenue.
They also don’t use interest rates, but rather factor rates to determine your payback terms. Industry-recognized factor rates range from 1.10 to 1.50 – and the faster you pay off the advance the lower your factor rate becomes.
Lock in a 1.19 factor rate if the advance is paid off completely in 30 days.
Lock in a 1.29 factor rate if the advance is paid off within 60 days.
Lock in a 1.49 factor rate if the advance is paid off within a year.
And so forth. . .
Factor rates are easy to figure out: if you borrow $10,000 and lock in a factor rate of a 1.19, then you would pay back a total of $11,900 ($10,000×1.19)
Merchant cash advances with same day funding are usually taken out automatically daily or weekly using ACH with your business checking account. The most important contributor in getting approved for a merchant loan is not credit score, or collateral, but your monthly business revenue.
There’s also no red tape on how you use the funds. You can use the money to pay bills, expand your business, or hire more workers. For many business owners, a business cash advance is their last resort in saving their business.
Applying for Merchant Loan Same Day Funding
We have helped thousands of businesses in over 700 industries receive well-needed fast capital to keep their doors open. The requirements for getting a business cash advance through us is very straightforward: Must be in business at least six months, have a credit score of 450 or higher, and generate $5,000 per month in revenue the last six months.
Simply click the apply link below to fill out a brief application. It won’t affect your credit and you can see what you qualify for instantly. From there you will need to connect your business checking account and submit the proper documents. If everything is in order and you get approved, you can have up to $25,000 deposited into your business checking account by the end of the day!
Of course, we look at any liens or outstanding loans you have, and we might not be able to get you the full amount you are requesting. Our general metric on advance amounts is typically up to 75% of your monthly revenue can be advanced to you (for up to $25,000) and 1 to 2 times your monthly revenue for loans up to $2 million (but your monthly revenue needs to be $20,000 per month for those.
Whatever your needs are, we hope we can help you with the most crucial aspect of your business: working capital to stay open. If this sounds good to you please click the link below and fill out the application. Thanks for reading and God Bless!
Erik C. Johnson